FL_Module_6

MODULE 6: SUPPLY CHAIN ISSUES

DIGITAL FASHION PROCESS IN INDIA

The form and way of life industry in India is seeing a flood, with solid drivers
of development and a large group of different elements bringing about its
encouraging. Pegged at $100 billion and developing at a CAGR of 8-10%
disconnected, the portion step by step is by all accounts holding onto online as
the channel of things to come, apparent from an anticipated entrance of 15-20%
throughout the following five years, from the current 4%. According to look
into, India has 450 million web at any point gotten to populace which is relied
upon to develop by 62% to 729 million by 2020. Of this, 310 million is the
dynamic web getting to populace, getting to the web at any rate once per month.
This number is required to increment by 35% to 419 million by 2020.

Of the online exchanges, 60 million is the base of online form customers. This
is evaluated to twofold by 2020 to around 120 million. There is likewise an
adjustment in customer profile, new fashion fragments, quick form and a
business opportunity for premium brands, item and embellishments. The
changing on the web purchaser profile is apparent from a huge move in
numbers, for example, 505 of shopper live in country territories instead of the
prior 30%. Ladies customers frame a base of 45% instead of the prior 28%.

India is amidst an advanced transformation and form is at the preeminent of this
change. Advanced impact alludes to form purchasers who utilize web in their
buy procedure independent of whether they really purchase on the web or not.
These shoppers might go online to find most recent patterns, doing examination
or value correlation or posting surveys and suggestions post buy. By 2020,

about portion of the form purchasers will be carefully impacted. 33% of
purchasers are probably going to purchase online by 2020.

This new pattern unavoidable requires form architects and retailers to adjust
their showcasing techniques to the evolving condition. They have to cut over
the buy adventures of these carefully affected shoppers, looking past web based
business.
The design showcase in India is as of now assessed at 70 billion dollars. Internet
shopping contributes roughly 5% of the aggregate around 4 billion dollars. The
online form is evaluated to triple by 2020 to achieve 12-14 billion dollars.

Fashion is an industry which has a short item life cycle and is thoroughly relies
upon evolving patterns. Advertisers ought to have the capacity to examination
and gauge the design drifts before the clients change to the contenders so the
form advertiser turns into a trailblazer and advanced media turns into the best
stage to procure and convert clients through estimating and streamlining
computerized media with the reason for fulfilling clients to hold them faithful
for deep rooted. Advanced showcasing has assesses for a defining moment in
design industry though in the present business world, computerized advertising
execute as an astounding medium in make customers consideration, intrigue,
want and activity towards a specific item or a brand.

Purchaser conduct is a particular set of accepted rules in which, the buyers are
shown in looking for, obtaining, utilizing, assessing and discarding the items
and the administrations which they expect will fulfill their necessities. The
investigation see how people settle on choices on spending their accessible
assets (time, cash, endeavors) on utilization related things. It alludes to an

extreme spotlight on what they get it, why they get it, when they get it, where
they get it, how frequently they get it and how regularly they utilize it.

Buyer purchasing conduct or basic leadership is an interior procedure which is
happening in the purchaser inward personality (black box) and an official
conclusion on buy is finished by the client all alone dependent on the effect
produced using inside and outer upgrade. In that the advertiser assumes a huge
job in instigate client through outside showcasing endeavors through item,
value, place and advancement.

The socio social natural factors likewise effect on this and the data sources
taken from the outside condition and interior condition are nourished in to the
procedure where the client distinguish their need, look and assess choices and
settle on choices as per their mental conditions. After the choice on buy, the
post buy assessment will be happened to whether to preliminary or to make a
recurrent buy.

With the broad accessibility of data, the present buyers turned out to be more
educated and ground-breaking as they are equipped for assessing data and buy
the best choice. So making accessible data and dynamic nearness in online
condition has turned into a fundamental part in the present business.

With the mechanical advancement, the customary procedure of buyer basic
leadership has changed in to the digitalized procedure though the present client
utilize web as a center point of basic leadership. The computerized time has
changed the social patterns which resultant an immediate impact on the
changing shopper practices. With its dynamic nature of buyer needs and needs,
the advertisers need to deliberately change and adjust to fulfill the customers.

With regards to the fashion business, customers are finding new ways and
methods for encountering the design purchasing instead of obtaining items or
administrations what they require. As today purchasers encountering the
decision of a more prominent scope of on the web and disconnected channels
than before, the advertisers ought to have the capacity to stimulate the fashion
customers with the ideal utilization of computerized media. With regards to
retail fashion, the industry includes created inside the everyday changing
patterns of designs on the planet. Inside the computerized showcasing society in
form industry, recognizable proof of buyer inclinations and the progressions are
much intricate and imperative.

• Setting standards: Customers are no longer tend to compare and contrast
brands with the direct competitors in fashion industry, rather it requires to
benchmark and oversee the best and modern ways of consuming. Fashion
brands are being against supermarket chains. Consumers go for the purchase
decision which matches to their preferences and needs from all the elements. So
it’s very important to ensure active online presence and make available the
needed content.

• Customer tolerance: Less tolerance level can be seen in the digital culture
where as if the consumer doesn’t meet his satisfaction he/she will tend to spread
the bad image through media.

• Customers are always experimenting: In past, consumers used to trust the
feedback provided by the experienced consumers before trying new products.
But in the current world, consumers are welcoming new experiences, products
and services with good quality features.

• Customer dialogue: Social media became the destination for build or destroy a
brand and brand reputation can stand or fall within a night.

• Loyalty: The customers in digital culture are open to switch, less loyal,
demand superiority and ready to pay for it.

• Promotion: Traditional promotions no longer works, instead of that it requires
to maintain a balance between online and offline promotions in a 360°point of
view.

• Information: Consumers are handful of product knowledge and no need of
planning what information to be handed on consumers.

• Multichannel communication: Brands no longer need to decide the
communication methods reach to consumers. Based on the interaction they
involved, brands need to select channels without giving a costly and priceless
exposure for the customer through channels.

THE LEGAL PERSPECTIVE

The three principle lawful regions you have to consider are security and
information gathering, licensed innovation issues, and standards and directions
of the shopper assurance bodies.

PROTECTION AND DATA COLLECTION

Most wards far and wide have security enactment set up that expects you to tell
individuals before you gather their own data. This incorporates somebody who
is as of now a client.

There is no overall security law that applies to the accumulation of information
however you ought to unveil the accompanying points of interest:

• The sorts of data your site or web based showcasing strategies gather

• How the data might be shared

• The process your clients can pursue to audit and change the data you have
about them

• Your approach's compelling date and a portrayal of any progressions
from that point forward

The most effortless approach to consent is to set up a Privacy Policy on your
site and require your clients or site clients to consent to it when you gather data
from them.

To ensure your client's or client's assention will stand up legitimately, utilize a
clickwrap technique. A clickwrap strategy is the place your client or client
needs to click "I Agree" to your Privacy Policy here and there. This could be the
point at which they join to get your advertising messages or when they make a
buy on your site.

It's likewise critical to promise your clients that once you've gathered their data,
you will keep it secure. Your clients need to feel they can confide in you. You
can demonstrate them you are dependable by illuminating them about how you
will ensure and store their data. Another potential security issue is the capacity
of client information. A well known route for some online organizations and

showcasing organizations to store information is to utilize distributed storage
suppliers. To promise your clients that you are protecting their information,
dependably pick a legitimate supplier.

PROTECTED INNOVATION ISSUES

The following legitimate issue to consider as an advertiser is protected
innovation. To start with, you need to secure your very own licensed
innovation, for example, trademarks and copyright. Second, you need to
guarantee that you don't encroach on the licensed innovation of others. How
about we investigate the primary sorts of licensed innovation insurance you may
require.

On the off chance that you are conveying showcasing messages or reaching
individuals with flyers or notices, the primary thing you should ensure is your
image or logo.

Enrolling a trademark gives you the restrictive ideal to utilize a particular word
or words, name, structure, or logo regarding particular products or
administrations. It is legitimate for a long time and is sustainable if certain
necessities are met.

Before you enroll yours, watch that you are not encroaching on any other
person's trademark and that your logo isn't excessively comparative, making it
impossible to somebody else's.

On the off chance that you utilize unique showcasing dialect on your site or
content in messages, you might need to copyright that content. Copyright

identifies with creation of unique works, including abstract, sensational,
melodic, aesthetic, compositional, and an expansive scope of different works.

On the off chance that you work with any outsiders who compose your
showcasing duplicate or content for you, guarantee that their work is checked
for written falsification. You would prefer not to encroach on another person's
copyrighted work when conveying your messages or pamphlets.

PUBLICIZING

The customer gathering necessitates that commercials and showcasing messages
must not misdirect buyers or unreasonably influence shoppers' conduct or
choices about the item or administration. Uncalled for or tricky publicizing is
denied, which implies that any showcasing must come clean and not forget any
significant data that a shopper would be occupied with.

Be cautious with any relative publicizing or advertising. On the off chance that
you don't analyze items decently and straightforwardly, you might rupture
promoting principles. Check the wording of your advertising messages precisely
and guarantee that somebody outside of your promoting group, (for example,
somebody from your legitimate group) has a speedy take a gander at what your
message is stating. A new match of eyes may see asserts that aren't exactly valid
or depictions that overemphasize an item's capacities.

CASE STUDY.1

1 Article on supplychain247- Zara’s fashion retail supply chain strategies

Zara has maintained it’s stand as a leader in the apparel industry and what
makes it so profitable is it’s unique supply chain strategies. Zara uses the
following principles to increase their net income and maintain a standing of
being a brand that is both fashion forward and affordable.
Quick response to Demand – Zara follows a pull model in their inventory and
supply chain management. They create up to 1000 designs every month based
on store sales and current trends. They monitor customer spending’s in the store
to evaluate and understand what types of designs are being consumed and then
accordingly iterate on their next designs.
Small Batch Productions – Zara has a fast turnover, they produce small number
of quantities for every product. This gives them the opportunity to quickly
understand what designs are successful. It is also a great way to explore new
designs and understand its acceptance rate in the market. This also heavily
reduces the risk of producing large quantities of something that the customer
does not want. Even though it might seem like a bad idea to invest in different
designs, Zara optimizes by using the same material only in different ways.
Central Distribution Center – Zara has very strong IT systems that back it’s
distribution. All the clothes are shipped back to Spain, the central location.
From here, it is distributed to different countries and stores is based on
individual requirements and needs of the particular locality.
As industries and competitors follow up on Zara’s unique supply chain model, it
is. Will Zara not be threatened by the new entrants or old catching up and
continue to practice it’s well tested and tried model or they will they be agile
and innovate to sustain a competitive edge through supply chain?

7 Rules of Fashion Supply Chain (Zara Case Study)

Fashion industry is one of the most primitive form of supply chain management
and its practices have been extended, adopted and become the best practices that
we use today. This article will show you the development of fashion industry
and how one company manages to bring the operations into the next level.

Fashion SCM 1.0

In 1984, US Apparel Industry created the task force called “Crafted With Pride
in the U.S.A. Council” with the goal to improve the overall competitiveness of
the industry. One year later “Kurt Salmon Associates” was assigned to
investigate the whole apparel supply chain. The result showed that materials
were in the warehouse or in transit as long as 40 weeks! In order to reduce lead-
time, Quick Response (QR) strategy was developed and there are 2 core
principles, namely, partnership between retailers and suppliers to improve the
information sharing and the adoption of technologies such as EDI, UPC Code
and point of sales data (POS).

Fashion SCM 2.0

When QR strategy has become saturated, companies have to find the ways to
differentiate themselves, some adopt ERP system, others adopt Just-in-Time
manufacturing concept. However, there is one company that stands out.
Zara who is the fashion retailer in Spain, has managed to get the attention from
academics and the first case study about its strategies was published by Harvard
Business School in 2003. In 2004, Kasra Ferdows, Michael A. Lewis, and Jose
A.D. Machuca published the article on Harvard Business Review named
“Rapid-Fire Fulfillment”.

The seven rules Fashion Supply Chain Management:

• Produce in small lot: small lot is the unique characteristics of lean
manufacturing which is not the case here. The logic behind this is that
small lot creates the sense of exclusivity. Customer need to make a quick
decision otherwise the next day the products they want will be gone. So
customer visits Zara’s stores to see new products more often and this
creates the huge amount of traffic and revenue.

• Centralize design and product development: the norm in the apparel (and
some other) industries is to develop new products by both in-house staffs
and through merchandisers. In the latter case, suppliers need to send
samples (through merchandisers) to buyers many many times.
Elimination of this back-and-forth communication reduces the time to
market drastically.

• Utilize work cell organization: each new product development team has
its own designers, sales, procurement and production planners the same
way as in a cellular manufacturing. This help Zara to streamline the
internal communication a lot.

• Control scheduling strictly: at Zara, store managers can place order 2
times a week, shipments are prepared and delivered within 24 hours (in
Europe) and products will be on displayed at stores the same day they
arrived. Since everything runs in a stead pace, they can reduce a waiting
time at every step of the way.

• Keep production in-house: Zara tries to stay away from low-cost country
sourcing and make an investment in the in-house manufacturing as much

as possible. The reason is that they believe the in-house production help
them to increase the overall flexibility.
• Automate production and warehouse facilities: since Zara believes in
time based competition, automation is the key to help them to increase
the speed and the accuracy of the operations.
• Adhere to all rules: implementing any one of these rules alone is not quite
effective. Then, they have to stick to all rules so the whole supply chain is
running like the well-oiled machine

ADVERTISING ISSUES IN FASHION LAW

Publicizing implies the creation of a portrayal in any shape regarding an
exchange, business, specialty or calling with the end goal to advance the supply
of products or administrations, including ardent property, rights and
obligations.129 Advertising is by and large controlled for the sake of the
shopper's security by individual workplaces which are approved to force fines if
certain conditions are met, especially concerning promoting which is likewise
an unjustifiable business practice.

Furthermore, deceptive promoting may give an ascent to private claims by
different rivals for the sake of their rights' security.

The key inquiry to be tended to by the form organization is whether to buy the
substance which is to be utilized in promoting from an outsider maker or permit
that content and likely be confined in its utilization later on. This worries music
and photos specifically. Acquired or made substance ensures more authority

over it, especially over legitimate complexities, which is refreshing not just
regarding model discharge.

Promoting in fashion has its very own specifics originating from prominent
models, sport personas and socialites' association, and in addition the renowned
specialists creating it. The previously mentioned require a significant dimension
of consideration devoted to selectiveness arrangements, secrecy, and as for the
faction of youth yet in addition to lawful limits of employing minors.

Form organizations will employ prominent people and furnish them with
impressive compensations. As often as possible these individuals are made into
spokespersons of the brands (form organizations) and their notoriety turns out to
be nearly that of the brand. This reality is gainful for the two gatherings when
the notoriety of both is great. The ethical conditions permit design organizations
to end the assention if the individual carries on in a way which is probably
going to impact the brand's notoriety contrarily. Notoriety of the brand, its items
and administrations and all the more essentially its exchange imprints can be
hurt which legitimizes prompt end with probability of "paw back" discount of
charges officially paid to that individual. A mind boggling moral condition will
incorporate open allegation, commitment in any action that is illicit, debasing,
notorious, revolting, scornful, liable to stun or annoy.

The data recorded above is pertinent to changes in appearance. In the event that
a model is employed to advance simply common restorative items, the
corrective organization ought to have the privilege to fire their agreement when
the model, e.g. experiences an unmistakable plastic medical procedure against
that organization's legislative issues.

The supposed "prop" is a protest utilized on screen (in front of an audience) by
on-screen characters amid a creation (execution). The props bring a danger of
encroachment of another person's exchange check or copyright. The design
organization would preferably know about protected innovation of different
contenders over mediator making ads. Regardless, careful consideration must be
paid to the props utilized in promoting. Props paying little respect to accidental
nature of its appearance, e.g. a figure, a work of art, a book, a magazine cover,
transmission, may give an ascent to licensed innovation holders' cases. The one-
moment long business shot of a ball printed with an example taking after the
Louis Vuitton's Toile Monogram inside a thirty seconds in length business for
Hyundai Sonata circulated in 2010 amid the Super Bowl presented to Hyundai
an extensive claim with a last misfortune. This utilization of a prop vesting in
the "Louis Vuitton darker" ball with a monogram design "LZ" was completely
shrewd. Hyundai expected to make a relationship with Louis Vuitton with the
end goal of formation of the customers' thought that Hyundai's advanced Sonata
vehicle is lavish (as Louis Vuitton products).133 Not actually exaggeratedly,
notoriety of the Louis Vuitton is great and solid and it has been the subject of
encroachments inside the whole history of the fashion organization. It is nothing
unexpected that Louis Vuitton is exceptionally cautious of any conceivable
encroachment of its trademarks and vivaciously guards its rights.